Firm halts equity release mortgages
A FIRM that provides equity release which allows older people to get a lump sum in return for a mortgage on the home has stopped taking new applications, writes Charlie Weston.
Seniors Money Ireland, the last company offering equity release for elderly people, stopped taking new applications from yesterday, the Irish Independent understands.
Bank of Ireland ceased offering equity release mortgages late last year, while another company, Ship, was forced to stop giving out loans in 2008.
An equity release scheme allows those who own their home and are over 60 to release some of its value without having to make repayments during their lifetime, move out or sell.
But the lender ends up taking a stake in the property which it gets once the property is sold when the owner dies.
Seniors Money told brokers that it was having difficulty sourcing loan funds.